Clover Health Investments Corp. breached their previous 52 week high, $24.93, Wednesday morning. This added to a worldwide increase in stock value of over 110% over the last week amid a shorting of the stock. Following market open, its price fell to just below Tuesday's $22.15 close.
Clover Health founded in 2014 and headquartered in Tennessee, is a Medicare-backed insurance seller with 458 full-time employees and provides managed provider network and health plans for Medicare-eligible consumers through its software platform.
The company recently obtained its possibility of a short squeeze opportunity, letting it gain CLOV its MEMS stock with the likes of AMC Entertainment and GameStop.
Among the American stock investors in the company is Chamath Palihapitiya, American venture capitalist and CEO of Clover who has placed a search on the special acquisition company that allowed Chaver to go public. Palihapitiya, who is addicted to the Internet-fueled market frenzies, saw his investment rocket to $682 million after a gain of over 30% on Tuesday.
Sentiments surrounding the recent rally starkly contrast to the in early February when an investment research firm with a focus on activist shortselling, which also publishes reports on alleged fraud by other companies, claimed Clover had without disclosing its ongoing investigation by the Department of Justice. This triggered a spiral in Clover's share price to its record low of $6.31.
Thomas Hum is a writer for Yahoo Finance. Follow him on Twitter: thomashumuim
Read the latest business news from Yahoo Finance.com. Learn about the latest financial news.